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UPS (NYSE:UPS) today announced it has ordered 14 Boeing 747-8 cargo jets and four new Boeing 767 aircraft to provide additional capacity in response to accelerating demand for the company’s air services. All of the new aircraft will be added to the existing fleet and no existing aircraft are being replaced.
The aircraft will be delivered on an expedited schedule, building on the company’s 2016 order of 14 Boeing 747-8 freighters. All 32 of the jets will be delivered by the end of 2022, adding more than 9 million pounds of cargo capacity. UPS’s global airline network includes more than 500 owned and leased aircraft. UPS received three new 747-8 freighters in 2017.
UPS announced February 1, 2018 more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding, and position the company to further enhance shareowner value.
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS Chairman and Chief Executive Officer. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
“Through our current and future actions, we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility,” Abney said.
The company plans to raise future capital spending above its previously committed six-to-seven percent of annual revenue. UPS will invest an additional $7 billion over three years for the construction and renovation of facilities, to acquire new aircraft and ground fleet vehicles, and to enhance the information technology platforms required to support the network, manage the business and power new customer solutions.
“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” Abney continued. “Our investments will create new jobs, secure existing jobs and expand opportunities for our people. We are committed to remaining a preferred employer by continuing to provide industry-leading compensation and excellent career opportunities.”
UPS also recently made a $5 billion tax-qualified contribution to the company’s three UPS-sponsored U.S. pension plans. This represents about $13,000 per participant. The voluntary contribution raised the funding level to above 90-percent, securing retirement benefits on behalf of union-represented and union-free employees eligible for UPS-funded pensions.
“Tax reform is a tremendous catalyst,” said Abney. “We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year.”
The aircraft will be delivered on an expedited schedule, building on the company’s 2016 order of 14 Boeing 747-8 freighters. All 32 of the jets will be delivered by the end of 2022, adding more than 9 million pounds of cargo capacity. UPS’s global airline network includes more than 500 owned and leased aircraft. UPS received three new 747-8 freighters in 2017.
UPS announced February 1, 2018 more than $12 billion in investments to expand the company’s Smart Logistics Network, significantly increase pension funding, and position the company to further enhance shareowner value.
“This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act,” said David Abney, UPS Chairman and Chief Executive Officer. “We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
“Through our current and future actions, we will enhance UPS’s position as the leading logistics provider by expanding capacity and technology investments to help customers meet their needs for dependable, day- and time-definite service with enhanced visibility and flexibility,” Abney said.
The company plans to raise future capital spending above its previously committed six-to-seven percent of annual revenue. UPS will invest an additional $7 billion over three years for the construction and renovation of facilities, to acquire new aircraft and ground fleet vehicles, and to enhance the information technology platforms required to support the network, manage the business and power new customer solutions.
“We applaud President Trump and Congress for their bold action to improve the U.S. economy,” Abney continued. “Our investments will create new jobs, secure existing jobs and expand opportunities for our people. We are committed to remaining a preferred employer by continuing to provide industry-leading compensation and excellent career opportunities.”
UPS also recently made a $5 billion tax-qualified contribution to the company’s three UPS-sponsored U.S. pension plans. This represents about $13,000 per participant. The voluntary contribution raised the funding level to above 90-percent, securing retirement benefits on behalf of union-represented and union-free employees eligible for UPS-funded pensions.
“Tax reform is a tremendous catalyst,” said Abney. “We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year.”
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